The three R's in investment strategy primarily refer to which of the following concepts?

The three R's in investment strategy—risk, return, and relative value—are fundamental concepts that investors consider when making investment decisions.

Risk pertains to the possibility of losing some or all of the invested capital, and it is an essential component of the investment process. Investors must assess the level of risk associated with various investments to align their portfolio with their risk tolerance and financial goals.

Return refers to the profit or loss generated by an investment over a specific period. Understanding potential returns is crucial for investors as they compare different investment opportunities and evaluate their effectiveness in achieving their financial objectives.

Relative value involves comparing the worth of different investments or assets in relation to each other. By analyzing relative value, investors can identify undervalued or overvalued assets, which guides them in making informed investment choices.

The correct answer reflects these core concepts, which are indispensable for formulating a successful investment strategy. The other options do not encapsulate these three critical areas as effectively, focusing instead on concepts that are either too narrow or unrelated to the primary tenets of investment strategy.